Anthony Albanese increases beer tax as energy bills soar

Millions of Australians have been hit by more price increases as the cost of living crisis worsens.

Beer prices will soar to as high as $12 per schooner after a 3.7 percent tax increase from the Albanian government took effect on Wednesday, the second increase in six months.

Anthony Albanese’s beer tax hike comes as Australia’s three biggest energy companies raised petrol prices in five states and territories.

It coincides with the launch of an investigation into the cost of living crisis.

The inquiry will hear from oil companies and supermarket chains to determine if enough has been done to stop skyrocketing prices.

Origin Energy, EnergyAustralia and AGL increased their gas rates on Wednesday, which will affect customers in NSW, Queensland, Victoria, South Australia and ACT.

Price increases vary by location and provider.

EnergyAustralia customers in Victoria on variable market contracts will see their bills increase by up to 26 per cent.

Origin Energy says Victorians will pay 21.1 percent more from February 1, while Queensland customers will fare much better with a 5.8 percent increase.

Origin’s small business customers can expect an average increase of 10.5 percent or $579 per year.

Origin’s executive general manager of retail, Jon Briskin, blamed the global gas shortage for rising costs.

“Raising prices is never a decision we make lightly, especially at a time when we know that some people are struggling with higher costs of living,” Briskin said.

“Like all retailers, we have faced materially high gas costs in recent months caused by the war in Ukraine which has put pressure on global gas supplies, meaning it costs us more to supply gas to our clients”.

Origin Energy, AGL and Energy Australia have all increased petrol prices, adding more price pain for struggling households.

The latest beer tax is linked to inflation, which earlier this week posted the highest annual jump since 1990.

Australians now pay the fourth highest beer tax in the world, behind Japan, Finland and Norway.

“This is the usual automatic indexing change that occurs twice a year under governments of both tendencies and it is not a new decision by this government,” a spokesman for Dr Chalmers said.

The Brewers Association is now lobbying Treasurer Jim Chalmers to freeze tax increases for two years.

“We respectfully listen to ideas presented to us, but they must be weighed against other priorities and fiscal challenges, with a budget that is riddled with trillion-dollar debt. ‘

However, Dr Chalmers has hinted that help is on the way amid fears that more homeowners will face increased mortgage stress in the coming months.

Beer prices will soar as much as $12 per schooner, the second increase in six months.

One-fifth of mortgage holders who signed up for a home loan during the ultra-low interest pandemic period will see their fixed rates renewed by the end of the year.

Most of the loans taken out during that period were obtained at interest rates between 1.75 percent and 2.25 percent.

Since then, the Reserve Bank has aggressively raised the cash rate in an attempt to rein in skyrocketing inflation, which hit 7.8 percent in the year through December.

“We are very concerned about people moving from fixed rates to much higher variable rates,” Dr. Chalmers told 7:30 on ABC on Tuesday.

“That will be a key pressure and a key concern in 2023.”

“Our job is to provide that relief where we can do it in a responsible and affordable way.”

“It’s all about getting wages moving, and that’s our focus.”

The RBA will hold its first meeting of the year next Tuesday, where the first interest rate hike is expected for 2023.